December 2014 WI Independent Agent Magazine

wisconsin

INDEPENDENT AGENT DECEMBER 2014

Happy Holidays FROM THE STAFF OF THE IIAW!

wisconsin

INDEPENDENT AGENT DECEMBER 2014 Eric Schwartz, Editor

Make-A-Wish Wisconsin Ultimate Game Room, A Place To Recover And Rest. . . . . . . 5 Marketing Minute The Right Tactics Will Improve Sales. . . . . . . . . . . . . . . . . . . . . 8 Virtual University A Question About Certificates Of Insurance. . . . . . . . . . . . . . . 10 Commentary From Counsel ACA Subsidy Question Headed To Supreme Court . . . . . . . . . 12

On The Cover…

To all of our member agencies and companies, thank you for your hard work and support over the past year

Errors & Omissions E&S Proposals: Do They Provide The Requested Coverage. . 14

and every year. We wish you a safe

Government Affairs After The Election: A Summary. . . . . . . . . . . . . . . . . . . . . . . . . . 17

happy start to the new year!

and merry holiday season and a

Technology Industry Must Update Its Payment Process . . . . . . . . . . . . . . 23 Member Profile Madison Mutual: Committed To Independent Agents . . . . . . 24 Cyber Liability Cybercrime Facts & Stats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2014-2015 Executive Committee President..................................................... John Wickhem P.O. Box 1500, Janesville, 53547-15 President-elect................................................. Steve Leitch P.O. Box 85, River Falls, WI 54022 Secretary-Treasurer........................................ Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Chairman of the Board................................. Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443 State National Director................................. Linda Steiner 555 Main Street #320, Racine, WI 53403 2014-2015 Board of Directors Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Mark Behrens 555 Main Street #320, Racine, WI 53403 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Mike Farrell 1300 S. Green Bay Rd., Racine, WI 53406 Chris Hanson 5601 Grande Market Drive, Appleton, WI 54913 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 WISCONSIN INDEPENDENT AGENT

Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701 2014-2015 Committee Chairs Agency Operations........................................ Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406 Automation/Technology................ Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949 Emerging Leaders....................................... Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504 Employee Benefits.............................................. Tim Bever 555 Main St. #320, Racine, WI 53403 Finance & Compensation............................. Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Government Affairs........................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Industry Relations........................................ Kevin Murray 525 Junction Road, Madison, WI 53717 Marketing & Membership Development............ Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610 Smaller Agencies..................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical.................................................... Mark Truyman P.O. Box 6 , Seymour, WI 54165

> OUR ADVERTISERS AAA................................................................. 30 ACUITY Insurance............................................. 31 Applied Underwriters.........................Back Cover Badger Mutual................................................. 22 Burns & Wilcox..................................................11 Capital Remediation........................................ 25 EMC Insurance................................................... 7 Guard Insurance............................................... 15 IIAW Continuing Education.............................. 28 InVEST.............................................................. 16 Make-A-Wish Wisconsin.....................................18 Northern Underwriting Managers.................... 13 Partners Mutual.............................................. 22 Pekin Insurance............................................... 22 Robertson Ryan................................................ 9 SECURA Insurance............................................. 4 Swiss Re E&O Program.................................... 26 The IMT Group.................................................. 19 West Bend......................................................... 2 Western National............................................... 6 Wilson Mutual................................................... 19 DECEMBER 2014 | 3

MAKE-A-WISH WISCONSIN

WISH FULFILLED: ULTIMATE GAME

ROOM, A PLACE TO RECOVER AND REST Bryce is like a lot of kids.

The eight-year-old lives in Cottage Grove with his parents, Jeff and Michelle, and his 10-year-old sister, Marissa. He loves movies (especially Star Wars and the Lego Movie), Adam Sandler, Badger football, video games, pizza, riding his bike and hanging out with his friends.

But Bryce is dealing with a trauma that no child should have to face.

© 2013 SECURA Insurance

In April 2014, Bryce was diagnosed with Ewing’s sarcoma, a rare bone cancer that occurs most frequently in youths. Only 200 cases are reported each year.

His treatments are exhausting. He has been in and out of the American Family Children’s Hospital in Madison receiving chemotherapy, platelets, blood and antibiotics.

But through it all Bryce has been amazing.

He has fought his illness bravely and managed to keep his spirits up. Family and community support has been unwavering from the beginning.

Let’s be there when they need that little push.

Make-A-Wish Wisconsin is continuing that support by fulfilling Bryce’s wish to have his bedroom remade into a game room. The inspiration for the game room came from Cameron, another wish kid he met and became friends with in the hospital.

“Being in the middle of chemotherapy is a struggle,” said Forrest Doolen, PR manager of Make-A-Wish Wisconsin. “That’s why this wish is going to mean so much. Bryce knows all about it and he has that to look forward to.”

Loving every minute since 1900

The Independent Insurance Agents of Wisconsin, with a grant from Trusted Choice, has partnered with Make-A-Wish to sponsor Bryce’s wish. The staff of the IIAW will help with the room makeover by assembling furniture, cleaning and decorating.

Commercial • Personal • Farm-Ag • Specialty 4 | NOVEMBER 2014

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

“We are thrilled to partner with Make-AWish again this year and honored to be involved in granting Bryce’s wish,” said Samantha Jefferson, IIAW Director of Marketing, Membership and Events. “Wendy, Christy, Forrest and all of the wonderful people at Make-A-Wish Wisconsin deserve the credit for his awesome new game room - we are simply the helping hands eager to facilitate their bright ideas. The opportunity to participate in making this brave eightyear-old’s wish a reality is as much a gift for us as it is for him.”

toy storage system (for his extensive Lego collection).

Since Star Wars is his favorite movie, his room will have a Star Wars theme, including bedding and decorations for the walls. It will be fully furnished with a loft bed, activity desk and a football-shaped desk chair.

After last year’s great experience with Novalie and her rock star dream, the IIAW is proud and humbled to be partnering with Make-AWish Wisconsin once again.

To play video games, his room will be outfitted with two video gaming chairs with speakers, a big flat screen TV, an Xbox One with four controllers, gaming headphones, Xbox live cards and an entertainment center to hold his new TV and video games. A $400 gift card donated by Game Stop will help Bryce buy his favorite games like Plants vs.

Zombies Warfare.

The wish also includes iPad minis, a Blu-Ray player (with Blu-Ray movies like Star Wars and superhero movies), Lego sets, and a

Bryce’s room will be revealed to him sometime in December as his health and current treatments allow.

“This is what Make-A-Wish is all about,” said Doolen. “We couldn’t do it without the support of Trusted Choice and the Independent Insurance Agents of Wisconsin. Bryce’s new room will make a great place to recover and rest. It will mean so much to him.”

“Make-A-Wish does a fantastic job of bringing hope to wish kids like Bryce,” said Matt Banaszynski, IIAW Executive Vice President. “I’m so proud of our staff at the IIAW for giving their time to Bryce and Make-A-Wish. We will continue to support this great cause in the future.”

Please visit wisconsin.wish.org and check out the many ways you can volunteer your time and efforts to this incredible organization.

Said Samantha: “If you’re not sure where to start, watch for the IIAW’s continued Make-A-Wish involvement throughout 2015 and let us know if you’d like to join our cause - the more the merrier!”

To give more support to Bryce, please go to facebook. com/bebravewithbryce and youcaring.com/ bebravewithbryce.

(Ed. note: Open Door Policy will return next month.)

Earlier this year, Bryce received a visit in the hospital from members of the UW football team.

DECEMBER 2014 | 5

SALES SUCCESS

WHAT MAKES A SUCCESSFUL SALES MEETING? My friend Steve has a saying that 80% of life is common sense, but only 20% of people use it. In my experience, a similar rule applies to sales meetings; eighty percent are a complete waste of time because simple common sense is missing.

If you follow these rules, you could find yourself with the 20% that conduct effective sales meetings.

Rule #1: Keep your meetings brief, positive and energized Most of the sales meetings I’ve been to are too long; when people leave them they are tired and deflated. Recently, I ran into a company that had sales meetings on Friday afternoons because they felt it was a good way to wind down at the end of a long week. Ouch!

Sales meetings should last for 60 to 90 minutes at the most and leave people upbeat and ready to tackle the week. Here are more important components of this rule: > Start and stop the meeting on time. Don’t wait for people who are late. It punishes those that are on time. > Have an agenda and stick to it. People have 30 seconds, five minutes, or whatever time is

appropriate. When their time is done, move on to the next person.

> Don’t invite random vendors who are not exclusive to your company. You can avoid having them talk about the flavor of the week.

> It’s fine to start by reviewing numbers and congratulating people for important wins, but this should last no more than a few minutes.

Don’t get bogged down in details aided by boring PowerPoint slides. > Stay positive and upbeat. While constructive conversation about problems and issues is encouraged, you must focus on solutions. If the room turns “negative with no solutions,” it’s time to put the brakes on and get the focus back on what you can do about the situation. > Don’t ramble or get stuck in the weeds with every detail about an agenda item. The minutiae can be handled off-line after the meeting.

> Don’t have boring heads from other departments droning on about their problems and what they need from sales.

Also, keep in mind that in order for the meetings to be positive, everyone must be present (barring some extenuating circumstance, of course). You must have a team mentality and no individual is an exception.

> Don’t highjack the meeting and take more time than allotted.

CONTINUED ON PAGE 27

> John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling. com. John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia.

Retention Strategy #19 LOCAL SERVICE

“ We’re here for you.

I mean, really here!”

Beckie Januszewski, Milwaukee Branch Claims Supervisor

Your customers like working with a local agent to handle their insurance. We think you deserve the same kind of attention. That’s why EMC has a fully staffed branch office in your area—to respond quicker and with a greater understanding of your area’s needs. It’s just one of the many reasons you and your policyholders Count on EMC®.

Milwaukee Branch: 855.495.1800

|

Home Office: Des Moines, IA

www.emcins.com © Copyright Employers Mutual Casualty Company 2013. All rights reserved.

MARKETING MINUTE

MARKETING MINUTE If you ask Sally what she does and she tells you she sells insurance, that’s all it takes — you shut down. However, when Sally recognizes that you’re ‘fiftyish’, you might feel different if she said, “I help people make sure they have enough money for a great retirement.” If you’re someone with a young family, Sally might say, “I help make the dream of going to college a reality.” It’s an approach that gives new meaning to ‘the customer comes first’.

4. Be careful when you make promises.

There’s always a temptation to tell customers what they want to hear and it leads to trouble.

“It will be here in about three weeks,” said the contractor, referring to the bathroom accessory selected by the customer. Well after the due date, the customer was upset because it still was unavailable, and was then told the expected delivery was several months later.

IT TAKES THE RIGHT TACTICS TO IMPROVE SALES PERFORMANCE In Lee Child’s Without Fail , a Secret Service official simplifies a disturbing problem. “If the Yankees come to town saying they’re going to beat the Orioles, does that mean it’s true?” And then he adds, “Boasting about it is not the same thing as actually doing it.”

It’s the same with sales where there’s often too much boasting and not enough doing. Here are seven tactics to improve sales performance.

Sales stories should be strategic, as marketer Jen Agustin suggests when she says, “If you think back to your favorite stories, the great ones are those that inform, educate and drive people to act.”

in 140 characters? I can’t even clear my throat in 140 characters. Same goes for Facebook.”

As the most techie director of all time, 1. Use stories that make a difference to Cameron’s outburst sends a message to customers. While facts help support a sales salespeople. It wasn’t so long ago that ‘cutting presentation, they can also be confusing, 2. Forget about the ‘latest and the greatest’. edge’ gave salespeople an advantage with create doubt and turn people off. Yet, many “I’ve made a conscious choice to not spend customers, as they longed for ‘the next great salespeople fill their presentations with all my time…looking down at a device,” thing’. But not now. The times have changed. ‘facts and figures’ It’s clear what moves them to and so-called ‘hard action now: they want what The savvy salesperson, knowing what can occur, takes information’ to build a works, what solves a problem, the initiative and contacts customers to understand solid, compelling case what gives them an edge. how they are feeling about their purchase and to with customers. reinforce why their buying decision was prudent.

3. Don’t talk about what A simple, quick story you do. It may sound crazy that grabs interest may to suggest that salespeople be far more effective should avoid talking about in moving a customer to action, however. says legendary motion picture director James what they do. Even so, it’s good advice. It’s While salespeople love to tell stories, too often Cameron of Avatar and Titanic fame in a tempting to talk about what we know best — they shoot themselves in the foot with stories recent USA Today interview. “I’m a Luddite. what we do. We’re excited about we do and about themselves or whatever comes to mind But a high-tech Luddite.” Referring to Twitter, want to share ‘the good news’. No matter at the moment, failing to sense the effect on “I hate it,” he says. “I hate everyone else’s what anyone says, to talk about what we do is the customer. tweets, too. They’re boring. What can you say a huge turn off for customers.

8 | DECEMBER 2014

WISCONSIN INDEPENDENT AGENT

It’s a familiar story and it points how out salespeople disappoint customers by making promises they can’t keep. It’s a deadly scenario. Once disappointment sets in, satisfaction begins unraveling.

To maintain customer confidence if a problem may occur, tell them about it upfront, keep them informed, and have options ready if they’re needed.

5. Don’t overstate. In other words, don’t exaggerate. It’s the curse that many salespeople fall prey to time-and-again so that it becomes second nature — and it always causes trouble. They can’t have a conversation

or make a presentation without ‘gilding the lily’, as they say. Salespeople want to look good to their customers so they stretch the truth, embellish the facts, and are even misleading.

heeded the salesperson’s advice and avoided making a costly mistake.

It’s a dangerous practice. For today’s customers, it’s one strike and we’re out.

No one understands this better than Amazon. And few companies do a better job communicating with customers, particularly when it comes to on time deliveries, accurate product descriptions, and reliable customer comments.

7. Reinforce the customer’s buying decision.

It’s just after the sale — when salespeople revel in their success — that the customer relationship is most vulnerable. This is when post-sale doubts set in and questions arise.

Perhaps they are getting more familiar with a purchase, encounter an unexpected issue, or discover that what they bought isn’t what they expected. Whether it’s a beer or Lexus, customers want to feel good when they make a purchase.

Unlike other retailers who try to lure customers with exaggerated claims, Amazon’s

The savvy salesperson, knowing what can occur, takes the initiative and contacts

goal is to build trust so customers come back again and again, even when a competitor may have a lower price. It starts with a ‘no exaggeration’ policy. Salespeople can learn from companies like Amazon.

customers to understand how they are feeling about their purchase and to reinforce why their buying decision was prudent. The person who made the sale should make the contact, otherwise the value of the call is diminished in the customer’s mind. > John Graham of The customer wants GrahamComm is a to know that the marketing and sales salesperson cares. strategist-consultant

6. Explore vulnerabilities. Salespeople can perform a significant service to customers by showing them where they may be losing business, how they might improve a procedure, have a product or service weakness, or any other exposure.

Because business owners and managers can be so caught up in daily operations that they fail to see potential threats, salespeople can be the extra set of eyes to provide valuable feedback.

The owner of a retail chain was ready to buy another store when a salesperson pointed out that significant changes in the area could have a negative impact on the business. The owner

When salespeople use the right tactics, they boast less, do more and improve their sales performance.

and business writer.

He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales.” Contact him at jgraham@ grahamcomm.com, 617.774.9759, or johnrgraham.com.

70% of agency owners don’t have a perpetuation plan Let ROBERTSON RYAN Be Part Of Your Future You’ve built a successful agency and book of business but don’t have someone to take it over when you retire. What do you do?

Plan your future with Robertson Ryan & Associates. By joining our team it allows you to: • • • • •

Keep your book Remain a trusted advisor to your clients to give them peace of mind Continue working until you decide to retire Find the right buyer for your book within Robertson Ryan to maximize your return Be in the 30% that have a plan

For more information call Gary Burton, Chief Operating Officer, at 414.221.0386. All calls will be kept in the strictest confidence.

WISCONSIN INDEPENDENT AGENT

DECEMBER 2014 | 9

VIRTUAL UNIVERSITY

A QUESTION ABOUT CERTIFICATES OF INSURANCE We get more “Ask an Expert” questions about certificates of insurance than any other single topic...there isn’t even a

Access our fleet of transportation solutions.

close second. Most recently we were asked when should you check the box under coverages for an additional insured and for what kind of coverages. In this short article, we give four considerations to this question.

My question has to do with issuing certificates. When should you check the box under coverages for Additional Insured? I have several CSAs in my office that, if a blanket AI applies to the GL, they check the box when building their cert holders name and will check it for not only the GL but the Auto and Excess Liability as well. I totally disagree with doing this unless the contract requires it and we have the carrier’s approval.

First: It’s our opinion that you are only obligated to indicate additional insured status for the coverages required by the certificate holder, typically those required by contract. If the contract doesn’t require excess coverage, then I would not voluntarily make any entry that indicates that there is excess coverage for an additional insured, even if there is. Otherwise, what you would need is your insured’s approval.

Second: If you are indicating that someone is an additional insured for auto or excess coverage and the additional insured endorsement is only for GL, then you have possibly issued a fraudulent certificate…without question, it’s inaccurate. Some states are taking a hard look at this. For example, Louisiana passed a law not long ago that someone issuing a fraudulent certificate is subject to a $5,000 fine and 5 years in prison at hard labor. Losing their agent license or being sued by the AI/certificate holder would be the least of their worries.

do this in the ISO program because primacy is largely governed by ownership.

Fourth: If you are using a blanket additional insured endorsement for GL, keep in mind that they almost always require that the additional insured status be requested in a written contract and it only applies to construction contracts. I know of an E&O carrier that paid a claim of almost a half million dollars because a certificate indicated that additional insured coverage was provided under a blanket AI endorsement, but the agency had not confirmed that the request from this particular AI was in writing (it wasn’t).

Be sure to check out the “Featured Resources” area of the VU for a compilation of certification related documents. Go to iiaba.net/VU, select Featured Resources and click Certificates of Insurance Resources.

If you are indicating that someone is an additional insured for auto or excess coverage and the additional insured endorsement is only for GL, then you have possibly issued a fraudulent certificate.

Third: Be very wary about saying that someone has additional insured status for auto coverage. ISO has a Designated Insured endorsement that is typically used for this, but it doesn’t add any coverage to the business auto policy.

It simply reinforces the Who Is An Insured section to clarify that the designated insured is covered for vicarious liability. Many contracts require coverage for an additional insured’s direct liability, not just vicarious liability, so if you expressly advise that the coverage is in compliance with such a contract, what you are saying would not be accurate. In > Bill Wilson is the director of the Virtual addition, contracts often require auto insurance University. Contact him additional insured status on a “primary and at Bill.Wilson@iiaba. noncontributory” basis. I know of no way to net.

Burns & Wilcox will carry the load for all your clients’ commercial vehicle needs. Access the widest range of markets from experts with the right solutions. Hit the road with the leader in global wholesale insurance – Burns & Wilcox.

Minneapolis, Minnesota | 612.564.1880 toll free 800.328.1693 | fax 612.564.1881 minneapolis.burnsandwilcox.com

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

10 | DECEMBER 2014

TRANSPORTATION SOLUTIONS

WISCONSIN INDEPENDENT AGENT

Milwaukee, Wisconsin | 262.347.0266 toll free 800.544.5700 | fax 262.347.0440 milwaukee.burnsandwilcox.com Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services

COMMENTARY FROM COUNSEL

AFFORDABLE CARE ACT SUBSIDY QUESTION HEADED TO SUPREME COURT To a column-writing attorney, the Affordable Care Act is the gift that keeps on giving.

The legality of the subsidies is a key issue in the ongoing debate surrounding the ACA because many consumers on the exchanges cannot afford policies without them. If consumers stop purchasing plans, the ACA’s individual mandate — arguably the most central aspect of the law — could become unenforceable.

In the wake of the recent shift in legislative power in Washington D.C., the future of the ACA promises to remain tumultuous.

Adding to the embarrassment of riches, three days after the election the United States Supreme Court decided to take up an ACA appeal regarding the availability of subsidies to consumers purchasing insurance policies through exchanges.

government to operate the health insurance exchange mandated by the ACA. The legality of the subsidies is a key issue in the ongoing debate surrounding the ACA because many consumers on the exchanges cannot afford policies without them. If consumers stop purchasing plans, the ACA’s individual mandate — arguably the most central aspect of the law — could become unenforceable.

If consumers stop purchasing plans, the ACA’s individual mandate – arguably the most central aspect of the law – could become unenforceable.

In previous alerts, the IIAW provided information on conflicting rulings issued by the Courts of Appeal in the D.C. Circuit and the Fourth Circuit regarding whether subsidies for consumers purchasing insurance policies are available in both state and federallyoperated exchanges under the ACA. The ACA states that subsidies are available to those who are “enrolled through an Exchange operated by the State.” The subsidies are made available via tax credits and, therefore, the Internal Revenue Service promulgated a rule interpreting the ACA broadly, and authorizing subsidies to health insurance purchased on any exchange – state or federal.

Thirty-six states, including Wisconsin, have declined to establish their own exchanges, opting instead to allow the federal

12 | NOVEMBER 2014

On July 22, 2014, in King v. Burwell U.S. Court of Appeals for the Fourth Circuit upheld the subsidies on the grounds that the subsidies constitute “a permissible exercise of the [IRS’s] discretion.” On the same day, the D.C. Circuit came to the opposite result, ruling 2-1 in Halbig, et al. v. Burwell, et al., that the ACA restricts subsidies to health insurance policies purchased on exchanges established by the state and, therefore, subsidies for consumers purchasing policies on the federally-operated exchange, HealthCare.gov, are barred by the ACA. On September 4, 2014, the D.C. Circuit vacated the decision in Halbig and set the case to be heard en banc (by the full panel of D.C. Circuit judges) on December 17, 2014. The vacated D.C. Circuit ruling also meant that

no circuit split existed on the issue of whether the subsidies were permissible.

On Friday, November 7, however, the U.S. Supreme Court voted to take the appeal of the Fourth Circuit’s decision in King v. Burwell — despite the lack of a circuit split. The absence of conflicting rulings suggests that the Supreme Court may be unhappy with the Fourth Circuit decision and may be looking to overturn it.

Further complicating the issue, some of the thirty-six states without their own independent exchange refer to their exchanges as “state-based” or “state partnerships” and, therefore, it is entirely possible that these exchanges would be deemed “state” exchanges sufficient to make subsidies permissible. If the Supreme Court strikes down the subsidies to state exchanges, Congress could act to amend the ACA language to permit more inclusive subsidization of health insurance.

However, with the Republicans now in charge of Congress, such an amendment seems highly unlikely.

As always, keep an eye on the headlines and this column to see how the ACA subsidy battle turns out.

> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

DECEMBER 2014 | 13

ERRORS & OMISSIONS

E&S PROPOSALS: DO THEY PROVIDE THE COVERAGE YOU REQUESTED? Let’s look at a typical event that occurs in virtually every independent agency. This example uses a contracting risk to illustrate the point, but the scenario could happen with virtually any class of business.

It’s always advisable to request a specimen of the policy form and the applicable exclusions from the wholesaler.

This is the only way that you will really know what coverage is being provided.

Your agency is looking to insure a contractor.

The current standard marketplace is not enthusiastic about this type of risk so your agency completes an application required by your wholesaler. The contractor advises you that they are “basically a carpenter” so you note that on the application. Your agency sends in the application and within a week or two, you receive the new business proposal.

So far, so good, right? Don’t count on it!

Are you thinking that the proposal contains all of the requested coverages? Since this was a basic request for general liability coverage, what could possibly be the problem?

One reason why the E&S market has been able to handle risks that the standard market is not interested in is because the E&S market can modify coverage by adding specific endorsements (typically exclusions) that carve out exposures of concern. With contractors (and potentially with other

14 | DECEMBER 2014

classes of business), there is a very good chance that the E&S proposal will contain an endorsement typically referred to as the Classification Limitation Endorsement. This endorsement will state that the coverage (in the example used) is provided only for the carpentry exposure. If the carpenter, for example, performs drywalling, plumbing or roofing, there is no coverage.

There is also the possibility that the proposal will reference various exclusions. There is no doubt that these can be significant. In fact, after reviewing the exclusions, you may wonder what coverage is actually being provided. You’re not the first to wonder about this. You may be thinking a GL policy is a GL policy whether it’s written in the E&S market or the standard market, right? Maybe not!

It’s always advisable to request a specimen of the policy form and the applicable exclusions from the wholesaler. This is the only way that you will really know what coverage is being

provided compared to what you originally asked for.

This specimen policy should then be provided to your client/prospect and they should be asked to review it. There is certainly the possibility the client will advise you that the coverage is not at the level that they require and, consequently, they don’t want the coverage. It is better to find this out before the coverage is bound or before a loss occurs.

Thus, on new business proposals from your wholesaler, examine them carefully. Your application may have asked for a number of various coverages. It is vital that you don’t assume that the proposal provides the coverage that you requested. Don’t count on the wholesaler to tell you what they are not providing because, at the end of the day, that is up to your agency to figure out.

Source: agentsofamerica.org WISCONSIN INDEPENDENT AGENT

Our Role in Your Office We’re specialists.

Small- to mid-sized “Main Street” accounts Workers’ compensation “lead line” Complementary coverages in select states

We’re secure.

Part of Warren Buffett’s Berkshire Hathaway A+ (”Superior”) A.M. Best Company rating

We’re growing.

Written premium of $500 million Doubled in size in recent years Active in 39 states (many with our BizGUARD Plus BOP product)

Berkshire Hathaway GUARD Insurance Companies can be a key carrier resource in your office. We have a well-defined focus that has

We’re competitive.

Accurate pricing (that can be sold!)

Tiered workers’ comp rate structure Other standard and unique special discounts

We’re fast and easy.

Same day (often samehour) turnaround on workers’ comp quotes On-line rating application Extensive Service Centers

Remember: We’re the quote you could come up against . . . so why not join us?

enhanced the income stream of countless agencies across the country. Plus . . . our longer-range vision is to bring one-stop insurance shopping to smaller business owners nationwide.

We’re growing and hope you are interested in joining us! We currently have agency appointments available.

To learn more, visit: www.guard.com/apply

Berkshire Hathaway

GUARD

Insurance Companies

Connect with Talented Future Employees

GOVERNMENT AFFAIRS

AFTER THE ELECTION:

GOP LANDSLIDE NETS LARGEST ASSEMBLY MAJORITY SINCE 1957 Sen. Lazich makes history as first woman Senate President; Dems select new minority leader

2015-16 Wisconsin Legislature Now that the dust from the elections has settled, let’s review the leadership in both the Assembly and Senate.

InVEST in new employees.

State Senate The Senate will be made up of 19 Republicans and 14 Democrats.

Republicans increased their majority winning an open seat in the 21st District in the southwestern part of the state. No incumbents lost from either party.

State Assembly The 2015-16 Assembly will have 63 Republicans and 36 Democrats. It is the largest majority for Republicans since 1957. Three incumbent Democrats were defeated in the elections: Rep. Amy Sue Vruwink

Industry perpetuation is more than a buzz term, it’s a process—and InVEST gets it. InVEST knows insurance and understands the 100 million people in the U.S. that make-up the millennial generation.

With an age range of 31-10, millennials want a career that helps them give back to their community, is flexible, offers continuing education and recognizes them for their efforts. Agents, carriers and service providers all have career opportunities that meet these requirements and InVEST is the brand that reaches students and young professionals—leaving them with a lasting impression of an insurance career.

The Future is Now The need for you to replace skilled workers will happen sooner than you may think. Over the next 15 years, 70 million baby boomers will retire and there will only be 15 million skilled workers to replace them. However, the insurance industry is having a hard time attracting this bright, young talent to the industry.

In a recent study by Deloitte, young people perceive the insurance industry as “old in general” (63%) and not innovative (53%). InVEST is dispelling the misconception in classrooms across the nation—and we can do this because of your support.

(D-Milladore), Rep. Stephen Smith (D-Rice Lake), and Rep. Mandy Wright (D-Wausau), for a net gain of three seats for Republicans.

InVEST Attracts Millennials to Insurance InVEST has found the right mix for growth. In the last year the number of InVEST programs grew by 47%. With your support, we can continue to reach more students, educate them on insurance and breakdown the stereotypes of the insurance industry. Interactive lessons and classroom activities change millennial’s perspective of the insurance industry and open students’ eyes to the lucrative career opportunities within the industry. This classroom instruction, paired with the assistance of volunteer insurance guest speakers, is proving to be the avenue to attract the millennial generation to insurance careers.

To attract the best talent and secure the future of the insurance industry, support InVEST now.

Majority and minority caucuses of both houses elected their leaders for the 2015-16 legislative session.

Senate Republicans selected the first woman Senate President in Wisconsin history and Senate Democrats elected a new leader.

Sen..Mary.Lazich.is.the.first.woman.in..

Wisconsin.to.be.selected.as.Senate.President.

Senate Republicans

Assembly Democrats

Majority Leader – Sen. Scott Fitzgerald (R-Juneau)

Minority Leader – Rep. Peter Barca (D-Kenosha)

Assistant Majority Leader – Sen. Paul Farrow (R-Pewaukee)

Assistant Minority Leader – Rep. Katrina Shankland (D-Stevens Point)

Senate President – Sen. Mary Lazich (R-New Berlin)

Democratic Caucus Chair – Rep. Andy Jorgensen (D-Milton)

President Pro Tempore – Sen. Rick Gudex (R- Fond du Lac)

Assistant Caucus Chair – Rep. JoCasta Zamarripa (D-Milwaukee)

Republican Caucus Chair – Sen. Sheila Harsdorf (R-River Falls)

Caucus Secretary – Rep-elect Beth Meyers (D-Bayfield)

Assistant Caucus Chair – Sen. Van Wanggaard (R-Racine)

Caucus Sergeant at Arms – Rep. Josh Zepnick (D-Milwaukee)

Senate Democrats

IIAW Conduit & PAC

Minority Leader – Sen. Jennifer Shilling (D-La Crosse)

The IIAW Conduit and PAC distributed nearly $60,000 in voluntary

Assistant Minority Leader – Sen. Dave Hansen (D-Green Bay)

contributions from the membership to Wisconsin candidates statewide

Democratic Caucus Chair – Sen. Julie Lassa (D-Stevens Point)

for the 2014 campaign cycle resulting in an impressive 97% success

Caucus Vice-Chair – Sen. Kathleen Vinehout (D-Alma)

rate. Combined, it is the largest and most active campaign finance program representing the Wisconsin independent agent and broker

Assembly Republicans Speaker – Rep. Robin Vos (R-Rochester) Speaker Pro Tempore – Rep. Tyler August (R-Lake Geneva) Majority Leader – Rep. Jim Steineke (R-Kaukauna) Assistant Majority Leader – Rep. Dan Knodl (R-Germantown) Republican Caucus Chair – Rep. John Murtha (R-Baldwin) Assistant Caucus Chair –

Student Scholarships It doesn’t stop there—in 2012, InVEST presented more than $60,000 in scholarships to students who want to pursue a career in insurance. These funds don’t only go toward university tuition; they can also be used to take state licensing courses.

Party Leadership

Rep. Lee Nerison (R-Westby) Caucus Secretary – Rep. Jesse Rodriguez (R-Franklin) > Misha Lee is Owner/ Founder of Lee Government Relations, LLC and lobbyist for IIAW. Follow Lee Government Relations on Twitter @mishavlee.

Caucus Sergeant at Arms – Rep. Sam Kerkman (R-Salem)

WISCONSIN INDEPENDENT AGENT

community. The IIAW Conduit and PAC contribute to those candidates who demonstrate strong support of the independent agency system, insurance industry and small business.

Below is a summary of the IIAW Conduit and PAC (July 2013 thru November 2014): IIAW members participating in Conduit: .............................................96 Conduit raised .............................................................................$55,779 Conduit spent..............................................................................$53,850 PAC raised........................................................................................$550 PAC spent .....................................................................................$6,000 Total raised .................................................................................$56,329 Total spent ..................................................................................$59,850 Total # of contributions:......................................................................38 Conduit/PAC election scorecard: ................................. 97% success rate

DECEMBER 2014 | 17

Make-A-Wish® Wisconsin

We grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.

Who We Are Make-A-Wish® is the largest wish-granting charity in the world, with 62 chapters in the United States and its territories and 37 affiliates on five continents. With the help of generous donors and a network of nearly 25,000 volunteers, Make-A-Wish grants a wish every 38 minutes, and has granted more than 225,000 wishes nationally. Since the founding of Make-A-Wish Wisconsin in 1984, nearly 4,600 families throughout the state have experienced the transformative power of a wish. Last year alone, the Wisconsin Chapter granted a record-breaking 325 wishes.

What We Do We grant the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.

100% of the children who medically qualify (according to their doctors) receive a wish, so long as they are between the ages of 2½ and 18 at the time of their referral and have never received a prior wish from any wish-granting organization.

ARE YOU totally

WORRY FREE?

Where Our Funds Come From Our funding comes through donations from individuals, businesses, foundations, charitable trusts and fundraisers. We DO NOT solicit funds via telemarketing. Thanks to our generous supporters, there has never been a waiting list for wishes in Wisconsin.

How We Help According to a national study, a wish helps children feel stronger, more energetic and more willing and able to battle their lifethreatening medical conditions. For many, it marks a turning point in the fight against their illness. A wish also improves children’s state of mind, replacing fear with happiness and helping them feel like normal kids again. Parents report that the wish experience helps repair and strengthen the family through a return to normalcy, and that feelings of hope and optimism replace fear and stress.

The act of wish granting also serves to strengthen communities. Volunteers who help grant wishes become more trusting in others and more optimistic in the future, creating a ripple effect of social value.

How You Can Help t Make a monetary donation in honor or memory of loved ones t Donate unused airline miles at www.wisconsin.wish.org/miles t Attend a Make-A-Wish fundraiser, or start one of your own t Purchase the annual Make-A-Wish holiday cards and calendar t Donate goods or services for auction at Make-A-Wish fundraisers t Volunteer at Make-A-Wish events, or serve as a wish granter and act as a liaison to wish families t Involve your children in our Kids For Wish Kids® or Wishmakers On Campus® youth fundraising programs t Ask your employer about donation matching programs, or contribute through workplace giving campaigns like United Way or Community Health Charities t Help share our mission through social media: www.facebook.com/wisconsinwish www.flickr.com/makeawishwisconsin www.youtube.com/makeawishwisconsin

800.236.WISH (9474)

WWW.WISCONSIN.WISH.ORG

WWW.IMTINS.COM

WEST DES MOINES, IOWA • 800.274.3531 • WWW.IMTINS.COM

Kathleen, 11 wished to swim with dolphins at Discovery Cove in June of 2012.

ACCREDITED CHARITY WISCONSIN INDEPENDENT AGENT

DECEMBER 2014 | 19

S W E N E H T N I S R E B MEM Company Adds Commercial Underwriter & Agency Relations Manager Mark Fowler, Commercial Lines Underwriting Manager, announced that Anne Hemann has accepted the position of Sr. Commercial Underwriter at Integrity.

Anne Hemann

Dan Reichardt

In her new role, Hemann will be working with the company’s agency partners in Minnesota to manage commercial business including quotes, new business and renewals to help them successfully grow with Integrity. Prior to accepting this position, Hemann was a commercial agency marketer with Federated Insurance in Owatonna, Minnesota.

“We’re excited to have Anne join Integrity,” Fowler said.

“With 20 years of commercial experience, complemented by a training and management background, she will be a great addition to our commercial lines team.” An Owatonna, Minnesota, native, Hemann received a degree in Organizational Business Management from Concordia University. She has also earned the Associate in Commercial Underwriting (AU) and Associate in General Insurance (AINS) certifications and is licensed to sell Property & Casualty insurance.

Scott David, Integrity Vice President of Sales and Marketing, announced that Daniel Reichardt had accepted the newly created Agency Relations Manager position. Previously Reichardt held the role of Agency Relations Specialist at Accident Fund Holdings in Lansing, Michigan. In his new role, Reichardt will be leading agency management activities including distribution strategies.

“Dan has a solid background in agency distribution, market data analysis and agency prospecting,” said David. “He understands the independent agency system and will be a key resource for our sales team, assisting our agency partners in achieving their growth and profitability goals.”

In addition to developing agency management best practices at Accident Fund, Reichardt was also a trainer, teaching classes on a variety of topics including workers’ compensation, sales and negotiation.

A graduate of Michigan State University, Reichardt holds a Bachelor of Arts degree in Marketing and has earned the Certified Authority on Workers’ Compensation (CAWC) designation.

To learn more about Integrity, please visit integrityinsurance.com.

Compass Opens New Location in Stevens Point John Guerndt, president of Compass Insurance Services, announced that they have opened a second location to better serve their growing number of clients in Portage, Wood and Waupaca Counties. The office is located at 5569 Highway 10 East – Stevens Point, WI.

20 | DECEMBER 2014

Compass Insurance Services provides home, auto, recreational, business, health, life and commercial insurance and work with carriers such as West Bend, Travelers, ACUITY, SECURA, Cincinnati, Progressive, Foremost, State Auto, Society, WPS, Humana, Security Health, Anthem, Delta Dental, United Healthcare, Aflac, Epic, Illinois Mutual, Unum, among others. The agency provides commercial insurance Mikhail Salienko services to a variety of sectors, including manufacturing, assisted living facilities, retail, medical clinics, construction contractors, homecare, non-for-profit, transportation/ trucking, restaurant/bars and many more.

Mikhail Salienko and Lisa Vandehey will serve clients at the Stevens Point location. Mikhail has more than 13 years experience in the insurance industry and has worked with national firms mastering his technical expertise in underwriting, workers’ compensation, claims and national level sales. Lisa Vandehey has worked in the insurance industry for more than 20 years. She has assisted sales agents, helped Lisa Vandehey customers manage claims and provided clients with information concerning their policies.

To learn more about Compass, please visit compassinsurance.net.

Grinnell Mutual Honored for Leadership in Technology Offerings Grinnell Mutual Reinsurance Company was recently honored with the Applied IVANS Interface Leadership Award presented by IVANS Insurance Solutions, a division of Applied Systems. The award recognizes Grinnell Mutual’s leadership to advance innovative communication with insurance agencies through agency-carrier interface. The company is one of 10 insurance carriers in the United States to receive the prestigious Leadership award.

“From executive management to our development teams, Grinnell Mutual has focused on being a company that is easy for our agency force to do business with,” said Director of Web Services Dennis Clark. “That includes increasing our product offerings that integrate Grinnell Mutual systems with agency management systems like Applied management systems. We’re pleased to receive this award.

Our staff has worked diligently to implement new products that benefit our agents.”

Grinnell Mutual offers agencies a full suite of secure batch download, real-time inquiry, and real-time rating transactions through Applied agency management systems. It was also among the first insurance companies to offer Applied Systems Alerts, now known as Activity Notes. This marks the sixth year Grinnell Mutual has earned recognition for its product offerings for Applied Systems users WISCONSIN INDEPENDENT AGENT

S W E N E H T N I S R E B MEM through IVANS. “Each year through the Interface Leadership Award, we are pleased to recognize leading Members of Grinnell Mutual’s Web Services team receive the Applied IVANS Interface Leadership Award. From left: Linda Hamilton, Pam insurance White, Denny Clark and Mitch Barnett. carriers, like Grinnell Mutual, that distinguish themselves in the advancement and innovation of carrier-agency interface,” said Doug Johnson, vice president, IVANS Insurance Solutions. “Increasing connectivity among carriers, agents, and the insured is critical to increasing business productivity and delivering superior customer service, enabling all industry stakeholders to remain competitive in today’s marketplace.”

To learn more about Grinnell, please visit grinnellmutual.com.

Company Recognized for Leadership in AgentFocused Technology ACUITY received three awards at the 2014 ACORD Implementation Forum for delivering agents technology solutions that support real-time business capabilities in both personal and commercial lines. Since 2000, ACUITY has received over 60 ACORD awards, more than any other property-casualty insurer in the country.

“ACUITY has been an early adopter and strong supporter of ACORD Standards,” said Karen McPadden, ACORD Director of P&C Implementation.

“We congratulate them on their awards and commend ACUITY for continuing to leverage ACORD Standards to provide best-in-class solutions.”

The awards ACUITY earned in 2014 include: • ACORD Action Award, recognizing ACUITY’s work to implement ACORD Standards and utilization of the ACORD Framework.

• ACORD Streamline Award, recognizing ACUITY’s usage of the ACORD Standards and Framework to significantly improve business processes.

• ACORD Industry Recognition/Leadership Award, an exclusive ACORD award that recognizes ACUITY’s leadership in the areas of Standards development, advocacy, and implementation.

ACUITY also received the 2014 Applied IVANS Interface Partner Award. The award recognizes ACUITY’s accomplishments in agency interface over the past year, including download, real-time inquiry, and real-time policy rating.

WISCONSIN INDEPENDENT AGENT

This is the 15th consecutive year that ACUITY has received awards from Applied Systems or the Applied Systems Client Network (ASCnet) for helping agents implement cost-saving download and real-time transactions. Agents using Applied’s solutions can interface with ACUITY’s own policy, rating, claims, and billing systems directly from their desktops without needing to rekey any information.

“ACUITY is committed to developing solutions that make it easy for independent agents to do business with us, enable agencies to be more efficient and profitable, and deliver real-time capabilities to agents through management systems and comparative raters that they already use in both personal and commercial lines,” said Ben Salzmann, ACUITY President and CEO. “The awards and recognition we received from both ACORD and Applied Systems demonstrate our ongoing industry leadership in agent-focused technology.”

Company Introduces Lead Generation Program ACUITY announced the introduction of its Lead Generation program, designed to help independent agents grow their business in a competitive marketplace and strengthen their position against directwriting companies. With ACUITY’s program, agents receive leads on prospects who have obtained an online quote for personal auto insurance through ACUITY. The Lead Generation program is unique compared to other companies’ online quote programs because ACUITY doesn’t compete with independent agents. Agents are paid full commission on any leads they write and retain full renewal rights on those accounts, no different than if the quote had originated in their office.

“ACUITY builds our online capabilities to empower independent agents, not to cut them out of the process,” said Ben Salzmann, ACUITY President and CEO. Consumers can follow a link at acuity.com to obtain a personal auto quote, and independent agencies may also display a link to the quote service within their own websites. If consumers obtain a quote at acuity. com, they are provided a choice of local independent agencies to complete the application process. Once a selection is made, an email is sent to the chosen agency advising them of the lead. Quotes that begin at an agency’s website are automatically assigned to that agency.

“In today’s market, it’s more important than ever that independent agents find ways to provide instant, online quotes to capture new customers. ACUITY’s Lead Generation program delivers that capability for agents while letting them maintain the important consultative process that should be part of an informed buying decision on the part of insurance consumers,” stated Wally Waldhart, Vice President - Sales and Communications.

To learn more ACUITY, please visit acuity.com.

DECEMBER 2014 | 21

BEYOND THE EXPECTED

Our coverage enhancements and endorsements go Beyond the expected.®

AUTO

• Roadside Rescue • Replacement Cost Coverage • Enhanced Coverage for Rental Cars • Pet Coverage • No Deductible on Glass Claims • Accidental Death Coverage • Tire Protection Coverage • Non-Standard Auto Program

HOME

• Identity Fraud Coverage with Resolution Service • Personal Injury • Pet Health Insurance • Equipment Breakdown Coverage • Earthquake Coverage • Water Back-Up of Sewers & Drains • Water & Sewer Line Breakage

BUSINESS

• Employment Practices Liability Insurance • Employee Benefit Liability Coverage • Equipment Breakdown Coverage • Water Back-Up of Sewers & Drains • Loss Control Services • Workers Compensation Claim Specialists • Employee Wage Expense Continuation

LIFE

• E-App for Most Life Products • Long Term Care Endorsement • Term Insurance Guaranteed Conversion Program • Access to Life Insurance Planning Specialists • Children’s Single Premium Term Plan

HEALTH

• Personal Customer Service • Extensive PPO & Transplant Facility Networks • Benefits Paid Faster than Industry Average • Wellness Coverage • Online Access to Claim Information • TPA Services

Offering some of the most innovative products available in the industry today, we strive to be the easiest company to do business with. Learn more.

2505 Court Street • Pekin, IL 61558 • 800-322-0160, Extension 2394 • www.pekininsurance.com

the

TECHNOLOGY

THE INSURANCE INDUSTRY MUST UPDATE THEIR PAYMENT PROCESS “The sale is not final until the check clears the bank.”

That was the mantra my father-in-law drilled into me during my first years in the insurance business. Getting paid for the insurance policies an agent sells is a crucial part of running a successful insurance agency.

How agencies have handled the payment process has not changed much over the years — send an agency invoice, receive the check in the mail, and deposit it into the bank.

Direct Bill moved some of the burdens of collecting money to the insurance company, but also transferred some of the customers’ loyalty from the agency to the company.

Today’s Consumers Demand Payment Options Today’s consumers are demanding more payment options than ever before. It is these changing expectations of agency clients that require you to begin to think differently about how you get paid for the policies you sell. I have a friend in Dallas who owns a business and charges over $20,000 of business expenses a month on a credit card to earn the points.

According to the latest New York Federal Reserve study on non-cash payments, the use of paper checks has gone from 37.3% of total transactions in 2003 to 18.3% in 2012 (the latest year available). The use of debit cards has correspondingly increased from 15.6% in 2003 to 47% in 2012.

We look for the best independent agents and build relationships that last the duration. We are committed to the independent agency system as the only means to deliver our products. Because of that, we work hand-inhand to help our agencies grow profitably.

For at least the past 6 years, payment companies have been trying to figure out

The insurance industry – insurance companies and insurance agents – need to begin the process of creating new ways for your clients to pay for their policy using whatever payment method they want. Setting up electronic payments is a complex issue.

There are many moving parts. It won’t be easy.

The industry needs to address and find a way to accept electronic payments as soon as possible.

To help you understand the complex issues the insurance industry faces in creating

Mobile technology is revolutionizing the global banking and payment industry at a very quick pace. These changes offer new opportunities for you to create a great customer experience.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com or Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com.

how to take advantage of mobile devices to make the payment process easier. After some false starts, this next shift in payments is gathering steam. Worldwide mobile payment WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

understanding of the payment industry as well as the opportunities the insurance industry has to accept electronic payments.

You can download a PDF copy of the paper at steveanderson. com. Enter Update Your Payment Process in the Search bar to access the PDF.

The Insurance Industry Needs to Innovate

Mobile Payments on the Rise

Our agents set us apart.

22 | DECEMBER 2014

transactions totaled $235.4 billion in 2013, a 44% increase from $163.1 billion in 2012, according to tracking firm Gartner.

They project a 38% jump to $325 billion in 2014.

electronic payment options, I have published a detailed white paper titled “It’s Time to Update Your Payment Process.” This white paper will help you gain a better

Mobile technology is revolutionizing the global banking and payment industry at a very quick pace.

These changes offer new opportunities for you to create a great customer experience.

Consumers are demanding. They want what they want, and they will find a way to get it. Many of your existing clients – like me – no longer even use paper checks. Younger consumers probably have never even had a checkbook.

Agencies of every size need to begin strategizing on the process they will use to be able to accept electronic payments > Steve Anderson provides for insurance information to insurance policies.

You have no choice.

Consumers are demanding it.

agents about how they can use technology to increase revenue and/or reduce expenses. He also likes to cook. Find tech and cooking information at steveanderson.com.

DECEMBER 2014 | 23

By Eric Schwartz

MEMBER PROFILE

MEMBER PROFILE

MADISON MUTUAL:

COMMITTED TO INDEPENDENT AGENTS Gary Robinson and Henry Pomrenke of Madison Mutual Insurance Company have been busy in 2014. group of independent agencies. Through this expansion, we are better able to serve our current and prospective policyholders and agency partners.”

And service is where Madison Mutual strives for excellence, for both agents and policyholders.

A BRIEF HISTORY: MADISON COUNTY TO MILWAUKEE, WISCONSIN

Joseph Hlad was so fed up with his insurance company for their handling of an auto claim he filed, he decided to start his own company. This was 1919.

In 1983, the company broadened its product offerings to include home, farm and personal umbrella. The company also changed its name to Madison Mutual Insurance Company.

In January 1920, less than a year later, Hlad opened Madison County Mutual Auto Insurance Company in his general store in Mont Station, Illinois, a suburb of Edwardsville. To get started, Hlad convinced 265 of his neighbors to contribute $20 each. His sharp salesmanship was the foundation for a company that’s been in business for almost 100 years.

Two years later, the company started marketing more aggressively and added its first independent agencies outside of Madison County in central and southern Illinois. By 2008, Madison Mutual had appointed 200 agencies all over Illinois.

By 1970, Madison County Mutual insured 40,000 vehicles in the area as an auto-only company.

However, that all changed in the early 1980s.

In April 2013, the company went live in Missouri with 34 agencies. The following year, Madison Mutual moved into Wisconsin with 16 independent agencies, including Milwaukee, Green Bay and La Crosse.

Said Robinson: “We offer a competitive commission and bonus program favorable to the agent.

We also have the ability to tweak our rates if they are not in line.”

Founded in 1920, Madison Mutual Insurance Company is based in Edwardsville, Illinois. Since July 1, 2014, the company has appointed 19 independent agencies in Wisconsin.

On July 1, as the company’s vice president of agency development and area marketing representative, respectively, the men oversaw the company’s entrance into Wisconsin and northeastern Illinois with 16 charter agencies.

By December 2014, Madison Mutual had appointed 19 agencies throughout Wisconsin. Agencies span from Evansville to the south (about 25 miles from Madison), northwest to Spooner, east to Green Bay, and southwest to Dodgeville.

The Badger State’s more populated cities — Milwaukee, La Crosse, Eau Claire, Stevens Point, Oshkosh and Middleton (near Madison) — all have an independent agency presence.

Available products include personal auto, homeowners, personal umbrella, renters and condo insurance. Later, policies will be available in Wisconsin.

24 | DECEMBER 2014

Madison Mutual’s path into Wisconsin was straightforward and efficient, much like the company.

“We attended the IIAW convention in 2013, set up a booth in the exhibit hall and started talking to agents to see if there was interest,” said Robinson, who started as an adjuster with Madison Mutual in 1977.

Shortly thereafter, Gary met with Matt Banaszynski (IIAW Executive VP) to talk about the insurance climate in Wisconsin and, as the old cliché goes, the rest is history. It took just over a year to get up and running in the state.

Company president Mike Wenos said the expansion into Wisconsin provides them with the opportunity to grow as a company and further diversify the business.

“We are excited to be in the Wisconsin market and partnering with such a strong

“For policyholders, the firm has the capability for online premium payments and claims reporting,” said Robinson. “We have experienced, sound insurance professionals that know the Midwest. We’ve been doing business in this region since 1920 and most of our employees have lived and worked here for a long time.”

For Gary and Madison Mutual’s experienced staff, independent is the only way to go.

“We are committed to our independent agencies and their customers,” he said. “We are not going in any other direction.”

Madison Mutual Insurance Company is headquartered at 1 Mutual Court in Edwardsville, Illinois. The company serves more than 250 independent agencies in Illinois, Missouri and Wisconsin. Madison Mutual is a Partner Sponsor of the IIAW. Find out more at madisonmutual.com, facebook. com/MadisonMutual, or call Gary Robinson at 618.655.2671.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

DECEMBER 2014 | 25

"

FOCUS ON CONTENT

Subject: An  Error  &  Omission  has  occurred.   Do  you  wish  to  review? ! " ' ) # $ " * % Complete  your  E&O  Fast  Quote  in  minutes.  ( (

COLLABORATION IS A THREE-WAY STREET If you’re looking for a successful outcome to your next website design and development project you better take a good, hard look at your collaboration methods – no matter what side of the desk you’re on. There’s you (the client), there’s the website design firm (us), and there’s the firm’s technology. That’s why it’s a three-way street.

First, let’s start with you.

Most, but certainly not all, web projects that extend beyond the agreed upon timetable, go the distance because of client distractions. And that’s understandable.

Hey, you have a business to run, people to manage, sales to develop, fires to fight and profitable transactions to celebrate.

But in all my years in this business, I’ve found that a one-hour commitment each week to the web development process goes a long way. Now, I’m not talking about preparing content, digging

up the old photos of the factory in the Red Wing shoebox or chasing down testimonials.

I’m talking about one hour to make critical decisions each week, to answer some questions, and review some insights.

Believe it or not, this really helps.

Second, let’s talk about us.

Most agencies believe what the great director, producer, writer and actor, Elia Kazan said, “I think there should be collaboration, but under my thumb.� Look, your website outcome is directly related to what you put into it.

# ' •  Big  Savings •  Expansive  Coverage •  Risk  Management  Tools  &  Resources

WHAT MAKES A SUCCESSFUL SALES MEETING?

Rule #2: The most important part of the meeting is education

Visit  IIAW.com  or  call  608.210.2972  for  a  free  review!

Focus on the areas that have the most impact: prospecting, presenting, closing, and building relationships with your biggest and most important accounts. Here are some areas you may cover: a Brainstorming strategy to win an account a How to beat the competition a How to ask for referrals a How to cold call or prospect effectively a How to close more deals The objective here is to get the best information from your best people. Some people are great at referrals, others are great at cold calling, and others are great at closing.

26 | DECEMBER 2014

Agencies don’t know your business as well as you do, not even close. The more we collaborate the better the results. That’s in person, on Skype, on the whiteboard, the phone, but never through email. You cannot project manage a website through email.

Never.

But you can through technology and that’s a question you should always ask your website design and development firm. Not just their process, but ask them to name the technology tools and resources they use to manage the process.

You can’t really drive a technological process without technology, can you? Some tools agencies use are free and that’s okay, but by and large, the enterprise-wide stuff is not, but it’s essential.

That’s why it’s a three- > Tom Marks founded TMA+Peritus to bring way street; you, us and great web content to the the technology that masses. Find out more at keeps us collaborative. tmaperitus.com.

WISCONSIN INDEPENDENT AGENT

WISCONSIN INDEPENDENT AGENT

Also, it’s important that the successful people are talking. While we want to be respectful and inclusive, we don’t need to hear tips from someone who has made one sale in the past nine months.

Rule #3: Open and close the meeting the right way Logistically you want to hold meetings early on Monday morning to start the week off right. This best ensures everyone is in early and focused at the beginning of the week.

Start the meeting with something short and positive. A positive quote or passage from a book is good. You can also have a weekly focus point. Another idea is to highlight something positive that may have happened recently.

Next, cover the agenda in 15 seconds or less then bridge into the main part of the meeting.

An effective way to close the meeting is to give everyone one or two action items that they can act on immediately. Here are some

CONTINUED FROM PAGE 7

good examples: > Go call on that account you’ve been afraid to call on. > Do something you haven’t done before or challenge yourself to break your previous best.

For example, if the most prospecting calls you’re ever made in a week is 50, shoot for 75 or 100. > Identify and do the one thing that once done, will ensure the whole week has been a success.

The key to effectively closing the meeting is to harness the energy created to take immediate action and get the momentum rolling toward a successful week. This will also help you develop the habits of stepping out of your comfort zone, facing your fears, and pushing yourself to become better.

DECEMBER 2014 | 27

CONTINUING EDUCATION ABEN ONLINE CLASSES

Data Privacy Insurance 2 CE Credits Approved Date: December 18, 2014 Location: ABEN Online – iiaw.aben.tv Time: 9:00 – 11:00 AM E&O Risk Management – Meeting the Challenge of Change 6 CE Credits Approved Date: December 18, 2014 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 4:00 PM Insurance and the Property Lease 2 CE Credits Approved Date: December 18, 2014 Location: ABEN Online – iiaw.aben.tv Time: 12:00 – 2:00 PM Policy Provision Potpourri 2 CE Credits Approved Date: December 18, 2014 Location: ABEN Online – iiaw.aben.tv Time: 1:00 – 3:00 PM From Medicaid to the Exchange: What Every Agent Should Know 4 CE Credits Approved Date: December 23, 2014 Location: ABEN Online – iiaw.aben.tv Time: 8:30 AM – 12:30 PM From Medicaid to the Exchange: What Every Agent Should Know 4 CE Credits Approved Date: December 30, 2014 Location: ABEN Online – iiaw.aben.tv Time: 12:00 PM – 4:00 PM Data Privacy Insurance 2 CE Credits Approved Date: January 5, 2015 Location: ABEN Online – iiaw.aben.tv Time: 9:00 – 11:00 AM Hot Topics in Personal Lines 2 CE Credits Approved Date: January 5, 2015 Location: ABEN Online – iiaw.aben.tv Time: 12:00 – 2:00 PM

IIAW ONLINE CLASSES

Top 10 Countdown of Personal Lines Coverages 3 CE Credits Approved Date: December 18, 2014 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM Who Is An Insured 3 CE Credits Approved Date: January 6, 2015 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM 10 Things Every Commercial Lines Agent Ought to Know 3 CE Credits Approved Date: January 13, 2015 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM Homeowners Hidden Exposures 3 CE Credits Approved Date: January 13, 2015 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM E&O Risk Management – Meeting the Challenge of Change (Parts 1 & 2) 3 CE Credits Approved for Each Class Date: January 14, 2015 Location: IIAW Webinar – iiaw.com/events Times: 8:00 – 11:00 AM (Part 1) 12:00 – 3:00 PM (Part 2) Personal Auto Policy 3 CE Credits Approved Date: January 15, 2015 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM Additional Insureds & Certificates of Insurance 3 CE Credits Approved Date: January 15, 2015 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM Ethics and the Law 3 CE Credits Approved Date: January 27, 2014 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM

CYBER LIABILITY

CYBERCRIME FACTS & STATS Global cybercrime has claimed 431 million adult victims in the past year, costing countries $114 billion in direct financial losses. That figure jumps to $388 billion when you factor in the value that victims place on the time they spent recouping the losses (Symantec Cybercrime Report 2011).

Consider these statistics:

Identity Theft a Identity theft has been the Number 1 consumer complaint to the Federal Trade Commission every year for the last thirteen years. a Javelin Strategy and Research estimates that in 2013 there were more than 12.6 million victims of identity theft in the U.S., or one every two seconds. The Department of Justice puts the figure for 2013 at 16.6 million victims. a To put that in perspective, there are more victims of identity theft each year than there are reported murders, attempted murders, assaults, burglaries, attempted burglaries, arsons, vehicle thefts, purse snatchings, pickpocketings, check fraud, and shoplifting, combined (FBI Uniform Crime Statistics).

a Consumer Reports found that one in every ten households experienced identity theft in 2011. a Because law enforcement is so overwhelmed

by identity theft cases, most police departments now investigate less than 1% of reported identity theft cases. That’s an unprecedented investigation level and the lowest for any crime in the history of modern law enforcement.

a One in every eight victims of identity theft is aged 50 or older, and one in every ten is aged 12-17 years (Department of Justice).

Data Breaches

a Every second, 14 adults worldwide are victimized by online fraudsters, which is more than 1 million people every day (Symantec Cybercrime Report 2011).

a 740 million personal records were exposed in data breaches worldwide in 2013, the highest number on record. Victims of data breaches who receive a breach notification are nine times more likely to fall victim to identity theft (2012 Identity Fraud Report).

a In July 2012, the IRS admitted that it paid more than $5 billion to identity thieves in fraudulent tax returns for the previous year, and expected to be conned out of more than $20 billion over the next five years.

a According to the Privacy Rights Clearinghouse, there has been an average of one new data breach every single day for the last five years. 80% of data breaches in 2011 involved Social Security numbers.

a Most identity theft victims will face the fight alone, with no support from law enforcement, their financial institution, or anyone else.

a In 2011, Visa estimated that about 95% of the credit-card data breaches it discovers are on its smallest business customers.

a The biggest impact of identity theft is not financial but the long-term damage - to credit, to trust, to your sense of personal safety.

Protect your business. For more about the IIAW’s cyber liability training and coverage, go to iiaw.com and select Cyber Liability.

FOR MORE CLASSES AND TO REGISTER, PLEASE GO TO IIAW.COM

WISCONSIN INDEPENDENT AGENT

DECEMBER 2014 | 29

FOOD FOR THOUGHT

FOLLOW OUR INDUSTRY PIONEERS

UNDERSTATEMENT OF THE YEAR: THE OCEAN IS BIG

The ocean covers 71 percent of the Earth’s surface and contains 97 percent of the planet’s water, yet more than 95 percent of the underwater world remains unexplored. Millions of undiscovered species exist underwater, but many may go extinct before explorers have the opportunity to find them. One of every six jobs in the United States is marine-related and over one-third of the U.S. Gross National Product originates in The Ocean coastal areas.

Deep ocean pressure is powerful enough to make your body cave in many times over. Despite this unbelievable force, creatures thrive in the bottomless unknown. The Mariana Trench near Guam is the deepest part of the ocean. Even at its 35,800 ft. depth, sea creatures such as a shrimp and a sea cucumber have been documented living on the floor.

Sources: NOAA & Listverse.com

THE SUN IS LAUGHING AT THE OCEAN’S SIZE

The Sun

The sun is the largest and most massive object in the solar system, but it’s just a medium-sized star among the hundreds of billions of stars in the Milky Way galaxy. Obviously, the Earth is smaller than the Sun, but the size difference is hard to fathom. One hundred and nine (109) Earths could fit along the face of the Sun. However, while that’s

huge, it’s nothing compared to the approximately 13 million Earths that could fit inside our Sun as a whole.

Sources: Space.com & Listverse.com

NOW PLAYING! Don’t just insure. Assist.

®

Help clients through the stress of an accident with AAA Accident Assist .

One call brings AAA roadside assistance to their crash site, sets the stage for hassle-free repairs, and reserves a rental car for their immediate use.

And you made it happen.

Contact Heidi Nienow today to learn more.

(608) 828-2614

hqnienow@AAAwisconsin.com

It’s just one of the powerful tools AAA Independent Insurance Agents enjoy.

IE-0011

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

ACUITY 30 | DECEMBER 2014

WISCONSIN INDEPENDENT AGENT

For All That Matters

WWW.ACUITYU.COM

CE VIDEO

Trusted Choice

PRSRT STD US POSTAGE

®

Independent Insurance Agents of Wisconsin

PAID

MADISON WI PERMIT NO. 2506

725 JOHN NOLEN DRIVE MADISON, WI 53713 ADDRESS SERVICE REQUESTED

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us.

©2014 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.